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Currency

Currency

Currencies

A system of money in general use in a particular country.

More About Currency

  • The currency markets tend to note changes in the global financial system before other asset classes
    • This is because currencies are the largest, most-trade and most liquid markets
  • Currencies rarely have extreme gains or losses because they are all relative (they trade in ranges)
      • Currencies are priced against each other
      • Except for hyperinflation, they rarely go to zero
      • It is also rare for them to make huge gains
    • Countries can attempt to maniuplate their currencies for gain:
      • Lower currency values can help increase exports (they are cheaper) and decrease imports
      • Lower currency values can help generate inflation 
      • VS. strong currencies which help drive deflation (imports cheapen)
      • The political party in power may want a cheaper currency in order to boost the economy (and their prospects of staying in office)



    Warnings and Disclaimers

    The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.

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